Slow re­cov­ery

Finweek English Edition - - LETTERS -

THE REA­SON WHY we had a col­lapse in the econ­omy is sim­ply be­cause the pow­ers that be that con­trol the flow of cash have painted them­selves into a cor­ner.

The easy so­lu­tion to our eco­nomic crash is sim­ply to ab­solve whole por­tions of the pop­u­lace of their debt re­pay­ments. The fact is they were lent that money by banks that didn’t even have it in the first place. With­out a cer­tain level of bad debt the econ­omy couldn’t spin. The usual cry is rob from the rich and give to the poor. How­ever, the only rich they’re in­ter­ested in rob­bing from are you and me.

And you thought Julius Malema was just off his noddy? Sounds to me he’s work­ing for the Euro­pean Union.

Can­celling large vol­umes of debt and get­ting the pa­per back into cir­cu­la­tion is the only way to get the thing mov­ing. Bailouts don’t re­solve the prob­lem, sim­ply be­cause it gets swal­lowed up again in in­ter­est re­pay­ments and per­pet­u­ates the cy­cle.

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